Earnings

Keeping an Eye on Stock’s Earnings: Francesca’s Holdings Corp (NASDAQ:FRAN)

Shares of Francesca’s Holdings Corp (NASDAQ:FRAN) reached at $15.70 during previous trading session. The company has experienced volume of 3,840,060 shares.

Francesca’s Holdings Corp (NASDAQ:FRAN) on March 21, 2017 reported financial results for the fourth quarter and fiscal year ended January 28, 2017.

Fourth Quarter Results:

Net sales increased 9% to $146.3 million from $134.6 million in the comparable prior year quarter.  This increase was due to the addition of 55 net new boutiques since the prior year period and a 42% increase in ecommerce sales driven by increased website traffic and conversion rate. Comparable sales were flat compared to the same period last year as the increase in average transaction value offset the decrease in transactions.  The Company opened five new boutiques and closed three boutiques during the quarter, bringing the total count to 671 at the end of the quarter.

Gross profit, as a percent of net sales, decreased to 46.4% from 49.1% in the prior year quarter.  This unfavorable variance was principally due to the Company’s strategic move to take accelerated markdowns in January, which included marking some merchandise out-of-stock at the end of the year, in order to enter fiscal year 2017 with clean inventories.

Selling, general and administrative expenses increased 6% to $44.3 million from $42.0 million in the prior year quarter. This increase was primarily due to higher boutique and corporate payroll to support the larger boutique base as well as increases in marketing and software costs, partially offset by lower impairment charges. The increase in marketing expense was due to the implementation of new marketing initiatives, while the higher software costs were due to continuing investments in technology and infrastructure.

Income from operations was $23.6 million, or 16.1% of net sales, compared to $24.2 million, or 18.0% of net sales, in the prior year quarter.

Net income for the fourth quarter was $14.6 million, or $0.39 diluted earnings per share, compared to $14.7 million, or $0.35 diluted earnings per share, in the comparable prior year period.

Full Year Results:

Net sales increased 11% to $487.2 million from $439.4 million in the comparable prior year.  This increase was due a 2% increase in comparable sales as well as the addition of 55 net new boutiques since the prior year end.  Ecommerce sales increased 42% driven by increased website traffic and conversion rate.

During fiscal year 2016, the Company opened 64 new boutiques and closed nine boutiques compared to 83 new boutiques opened and six boutiques closed in fiscal year 2015.

Net income for fiscal year 2016 totaled $42.0 million, or $1.09 diluted earnings per share, compared to $38.2 million, or $0.91 diluted earnings per share, in the prior year.

Francesca’s Holdings Corp (NASDAQ:FRAN) holds the market capitalization of $600.05M along with 37.60M outstanding shares. During the last trade, stock’s minimum price has been reached out at $14.96 while the maximum trading price moved at $15.71. Currently the stock price is moving -29.88% off from the highest level of twelve months and +61.03% above from twelve months low. Francesca’s Holdings Corp (NASDAQ:FRAN) marked 52-week highest price level of $22.39 on 12/09/16 and 52-week lowest price level of $9.75 on 06/10/16. For the stock, price target value has been calculated at $17.29 based on calls of 7 experts. Stock’s minimum price target estimates has been figured out at $14.00 while the maximum price target forecast is established at $22.00.

As of current trade, Francesca’s Holdings Corp (NASDAQ:FRAN) has shown weekly downbeat performance of -2.55%. Its six months performance indicated a bullish movement while its yearly performance reflected a negative trend of -9.20%. Year-to-date (YTD) performance of the stock illustrate upbeat downbeat trend of -12.92%. Shares of Francesca’s Holdings Corp (NASDAQ:FRAN) currently have an ABR of 2.60, derived from a total of 10 opinions. The company’s price sits -9.91% below from its 50-day moving average of $17.16 and 1.00% above from the stock’s 200-day moving average of $17.09. The company has Relative Strength Index (RSI 14) of 38.19 along with Average True Range (ATR 14) of 0.74. Its weekly and monthly volatility is 5.59%, 4.39% respectively. The company’s beta value is at 0.60.

Francesca’s Holdings Corp (NASDAQ:FRAN) currently has a PEG ratio of 1.48 where as its P/E ratio is 14.77. The company’s price to sales ratio for trailing twelve months is 1.25 and price to book ratio for most recent quarter is 5.57, whereas price to cash per share for the most recent quarter is 24.01. Francesca’s Holdings Corp (NASDAQ:FRAN)’s price to free cash flow for trailing twelve months is 13.21. Its quick ratio for most recent quarter is 1.40 along with current ratio for most recent quarter of 2.70. Total debt to equity ratio of the company for most recent quarter is 0.00 whereas long term debt to equity ratio for most recent quarter is 0.00. Francesca’s Holdings Corp (NASDAQ:FRAN) has a Return on Assets of 23.30%. The company currently has a Return on Equity of 37.40% and Return on Investment of 30.70%.

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